USDA finds biofuels will cause up to $68 billion drop in US oil imports by 2022

In Washington, the USDA’s Economic Research Service has published “Effects of Increased Biofuels on the Economy by 2022,” which finds that by substituting domestic biofuels for imported petroleum, the United States would pay less for imports overall and receive higher prices for exports, providing a gain for the economy from favorable terms of trade.

Improved technology and increased investment would enhance the ability of the U.S. economy to expand. According to the report, U.S. imports of crude oil would fall by 16-17% in 2022, and the U.S. import bill for crude oil would decline by $61-$68 billion, leading to an appreciation in the value of the US dollar.

Download the ERS report here.